We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Share Name | Share Symbol | Market | Type |
---|---|---|---|
ImageWare Systems Incorporated (CE) | USOTC:IWSY | OTCMarkets | Common Stock |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 0.0001 | 0.00 | 01:00:00 |
DRAFT
|
[X]
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
|
[ ]
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE EXCHANGE
ACT
|
Delaware
|
|
33-0224167
|
(State or Other Jurisdiction of Incorporation or
|
|
(IRS Employer Identification No.)
|
Organization)
|
|
|
Large accelerated filer
|
[ ]
|
Accelerated filer
|
[X]
|
Non-accelerated filer
|
[ ]
|
Smaller reporting company
|
[ ]
|
|
|
Emerging
growth company
|
[
]
|
|
|
|
Page
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
|
||
|
|
|
1
|
|
|
|
|
|
2
|
|
|
|
|
|
3
|
|
|
|
|
|
4
|
|
|
|
|
|
5
|
|
|
|
|
|
|
||
|
|
19
|
|
||
|
|
32
|
|
||
|
|
|
|
32
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
33
|
|
||
|
|
33
|
|
||
|
|
33
|
|
||
|
|
33
|
|
||
|
|
33
|
|
||
|
|
33
|
|
||
|
|
33
|
|
||
|
|
|
|
|
|
|
34
|
|
|
June 30,
2017
|
December 31,
2016
|
ASSETS
|
(Unaudited)
|
|
Current
Assets:
|
|
|
Cash
|
$
104
|
$
1,586
|
Accounts
receivable, net of allowance for doubtful accounts of $16 at June
30, 2017 and $1 at December 31, 2016.
|
332
|
287
|
Inventory,
net
|
53
|
23
|
Other
current assets
|
148
|
135
|
Total
Current Assets
|
637
|
2,031
|
|
|
|
Property
and equipment, net
|
62
|
93
|
Other
assets
|
35
|
34
|
Intangible
assets, net of accumulated amortization
|
100
|
106
|
Goodwill
|
3,416
|
3,416
|
Total Assets
|
$
4,250
|
$
5,680
|
|
|
|
LIABILITIES AND SHAREHOLDERS’ DEFICIT
|
|
|
|
|
|
Current
Liabilities:
|
|
|
Accounts
payable
|
$
343
|
$
425
|
Deferred
revenue
|
608
|
1,045
|
Accrued
expenses
|
1,237
|
1,047
|
Convertible
lines of credit to related parties, net of discount
|
—
|
2,528
|
Total
Current Liabilities
|
2,188
|
5,045
|
|
|
|
Convertible lines
of credit to related parties, net of discount
|
5,687
|
—
|
Pension
obligation
|
1,955
|
1,895
|
Total
Liabilities
|
9,830
|
6,940
|
|
|
|
Shareholders’
Deficit:
|
|
|
Preferred
stock, authorized 4,000,000 shares:
|
|
|
Series
B Convertible Redeemable Preferred Stock, $0.01 par value;
designated 750,000 shares, 389,400 shares issued, and 239,400
shares outstanding at June 30, 2017 and December 31, 2016;
liquidation preference $607 at June 30, 2017 and December 31,
2016.
|
2
|
2
|
Series
E Convertible Redeemable Preferred Stock, $0.01 par value;
designated 12,000 shares, 12,000 shares issued and outstanding at
June 30, 2017 and December 31, 2016; liquidation preference $12,000
at June 30, 2017 and December 31, 2016.
|
—
|
—
|
Series
F Convertible Redeemable Preferred Stock, $0.01 par value;
designated 2,000 shares, 2,000 shares issued and outstanding at
June 30, 2017 and December 31, 2016; liquidation preference $2,000
at June 30, 2017 and December 31, 2016.
|
—
|
—
|
Series
G Convertible Redeemable Preferred Stock, $0.01 par value;
designated 6,120 shares, 6,021 shares issued and outstanding at
June 30, 2017 and December 31, 2016; liquidation preference $6,021
at June 30, 2017 and December 31, 2016.
|
—
|
—
|
Common
Stock, $0.01 par value, 150,000,000 shares authorized; 93,147,822
and 91,853,499 shares issued at June 30, 2017 and December 31,
2016, respectively, 93,141,118 and 91,846,795 shares outstanding at
June 30, 2017 and December 31, 2016, respectively.
|
930
|
917
|
Additional
paid-in capital
|
158,236
|
156,195
|
Treasury
stock, at cost 6,704 shares
|
(64
)
|
(64
)
|
Accumulated
other comprehensive loss
|
(1,621
)
|
(1,543
)
|
Accumulated
deficit
|
(163,063
)
|
(156,767
)
|
Total
Shareholders’ Deficit
|
(5,580
)
|
(1,260
)
|
Total Liabilities and Shareholders’ Deficit
|
$
4,250
|
$
5,680
|
|
Three Months Ended
June 30,
|
Six Months Ended
June 30,
|
||
|
2017
|
2016
|
2017
|
2016
|
Net
loss
|
$
(2,547
)
|
$
(2,114
)
|
$
(5,276
)
|
$
(4,389
)
|
Other
comprehensive income (loss):
|
|
|
|
|
Foreign
currency translation adjustment
|
(61
)
|
23
|
(78
)
|
(31
)
|
Comprehensive
loss
|
$
(2,608
)
|
$
(2,091
)
|
$
(5,354
)
|
$
(4,420
)
|
|
Six Months Ended
June 30,
|
|
|
2017
|
2016
|
Cash flows from operating activities
|
|
|
Net
loss
|
$
(5,276
)
|
$
(4,389
)
|
Adjustments
to reconcile net loss to net cash used by operating
activities:
|
|
|
Depreciation
and amortization
|
38
|
70
|
Amortization
of debt issuance costs and beneficial conversion
feature
|
97
|
37
|
Reduction in
accrued expense from the expiration of statute of
limitations
|
—
|
(200
)
|
Provision
for losses on accounts receivable
|
15
|
—
|
Stock-based
compensation
|
550
|
565
|
Gain
from sale of trademark
|
(50
)
|
—
|
Change
in assets and liabilities
|
|
|
Accounts receivable
|
(60
)
|
75
|
Inventory
|
(30
)
|
(28
)
|
Other assets
|
(21
)
|
(73
)
|
Accounts payable
|
(82
)
|
—
|
Deferred revenue
|
(438
)
|
(434
)
|
Accrued expenses
|
192
|
(129
)
|
Pension obligation
|
60
|
81
|
Total
adjustments
|
271
|
(36
)
|
Net
cash used in operating activities
|
(5,005
)
|
(4,425
)
|
|
|
|
Cash flows from investing activities
|
|
|
Purchase
of property and equipment
|
(1
)
|
(44
)
|
Proceeds
received from sale of trademark
|
50
|
—
|
Net
cash used in investing activities
|
49
|
(44
)
|
|
|
|
Cash flows from financing activities
|
|
|
Proceeds
from exercised stock options
|
227
|
—
|
Proceeds
from lines of credit, net
|
3,350
|
1,500
|
Dividends
paid
|
(25
)
|
(25
)
|
Net
cash provided by financing activities
|
3,552
|
1,475
|
|
|
|
Effect
of exchange rate changes on cash
|
(78
)
|
(31
)
|
|
|
|
Net
decrease in cash
|
(1,482
)
|
(3,025
)
|
|
|
|
Cash
at beginning of period
|
1,586
|
3,352
|
|
|
|
Cash
at end of period
|
$
104
|
$
327
|
|
|
|
Supplemental
disclosure of cash flow information:
|
|
|
Cash
paid for interest
|
$
—
|
$
1
|
Cash
paid for income taxes
|
$
—
|
$
—
|
Summary
of non-cash investing and financing activities:
|
|
|
Beneficial
conversion
feature on
convertible related party lines of credit
|
$
281
|
$
121
|
Stock
dividend on Convertible Redeemable Preferred Stock
|
$
996
|
$
631
|
(Amounts in thousands except share and per share
amounts)
|
Three Months Ended
June 30,
|
Six Months Ended
June 30,
|
||
|
2017
|
2016
|
2017
|
2016
|
Numerator
for basic and diluted loss per share:
|
|
|
|
|
Net
loss
|
$
(2,547
)
|
$
(2,114
)
|
$
(5,276
)
|
$
(4,389
)
|
Preferred
dividends
|
(514
)
|
(309
)
|
(1,021
)
|
(657
)
|
|
|
|
|
|
Net
loss available to common shareholders
|
$
(3,061
)
|
$
(2,423
)
|
$
(6,297
)
|
$
(5,046
)
|
|
|
|
|
|
Denominator
for basic and dilutive loss per share – weighted-average
shares outstanding
|
92,539,230
|
94,298,567
|
92,203,567
|
94,185,967
|
|
|
|
|
|
Net
loss
|
$
(0.03
)
|
$
(0.02
)
|
$
(0.06
)
|
$
(0.05
)
|
Preferred
dividends
|
(0.00
)
|
(0.01
)
|
(0.01
)
|
(0.00
)
|
|
|
|
|
|
Basic
and diluted loss per share available to common
shareholders
|
$
(0.03
)
|
$
(0.03
)
|
$
(0.07
)
|
$
(0.05
)
|
Potential
Dilutive securities
|
Three and
Six Months Ended
June
30,
|
|
|
2017
|
2016
|
|
|
|
Related party lines
of credit
|
5,016,236
|
1,209,635
|
Convertible
redeemable preferred stock
|
11,709,151
|
6,361,818
|
Stock
options
|
6,171,555
|
5,582,136
|
Warrants
|
175,000
|
450,000
|
Total potential
dilutive securities
|
23,071,942
|
13,603,589
|
Fiscal Year Ended December 31,
|
Estimated Amortization
Expense
($ in
thousands)
|
2017
(six months)
|
$
6
|
2018
|
12
|
2019
|
12
|
2020
|
12
|
2021
|
12
|
Thereafter
|
46
|
Totals
|
$
100
|
($ in thousands)
|
June
30
,
2017
|
December 31,
2016
|
Lines
of Credit
|
|
|
8%
convertible lines of credit. Face value of advances under lines of
credit $6,000 and $2,650 at June 30, 2017 and December 31, 2016,
respectively. Discount on advances under lines of credit is $313 at
June 30, 2017 and $122 at December 31, 2016. Maturity date is
December 31, 2018.
|
$
5,687
|
$
2,528
|
|
|
|
Total
lines of credit to related parties
|
5,687
|
2,528
|
Less
current portion
|
(—
)
|
(2,528
)
|
Long-term
lines of credit to related parties
|
$
5,687
|
$
—
|
|
Common Stock
|
Shares
outstanding at December 31, 2016
|
91,846,795
|
Shares
issued as payment of stock dividend on Series E
Preferred
|
584,437
|
Shares
issued as payment of stock dividend on Series F
Preferred
|
96,716
|
Shares
issued as payment of stock dividend on Series G
Preferred
|
291,170
|
Shares
issued pursuant to option exercises
|
322,000
|
Shares
outstanding at June 30, 2017
|
93,141,118
|
|
Warrants
|
Weighted- Average
Exercise Price
|
Balance
at December 31, 2016
|
175,000
|
$
0.84
|
Granted
|
—
|
—
|
Expired
/ Canceled
|
—
|
—
|
Exercised
|
—
|
|
Balance
at June 30, 2017
|
175,000
|
$
0.84
|
|
Options
|
Weighted-Average
Exercise Price
|
Balance
at December 31, 2016
|
6,506,843
|
$
1.21
|
Granted
|
35,000
|
$
1.05
|
Expired/Cancelled
|
(48,288
)
|
$
2.01
|
Exercised
|
(322,000
)
|
$
0.71
|
Balance
at June 30, 2017
|
6,171,555
|
$
1.22
|
|
Three Months Ended
June 30,
|
Six Months Ended
June 30,
|
||
|
2017
|
2016
|
2017
|
2016
|
Cost
of revenue
|
$
5
|
$
5
|
$
10
|
$
10
|
General
and administrative
|
165
|
172
|
329
|
346
|
Sales
and marketing
|
55
|
54
|
110
|
109
|
Research
and development
|
50
|
49
|
101
|
100
|
|
|
|
|
|
Total
|
$
275
|
$
280
|
$
550
|
$
565
|
|
Fair Value at June 30, 2017
|
|||
($ in thousands)
|
Total
|
Level 1
|
Level 2
|
Level 3
|
Assets:
|
|
|
|
|
Pension
assets
|
$
1,789
|
$
1,789
|
$
—
|
$
—
|
Totals
|
$
1,789
|
$
1,789
|
$
—
|
$
—
|
|
Fair
Value at December 31, 2016
|
|||
($ in thousands)
|
Total
|
Level 1
|
Level 2
|
Level 3
|
Assets:
|
|
|
|
|
Pension
assets
|
$
1,645
|
$
1,645
|
$
—
|
$
—
|
Totals
|
$
1,645
|
$
1,645
|
$
—
|
$
—
|
($ in thousands)
|
|
2017
(six months)
|
$
208
|
2018
|
203
|
2019
|
35
|
2020
|
35
|
2021
|
9
|
Total
|
$
490
|
|
Three Months Ended
June 30,
|
|
|
|
Net Product Revenue
|
2017
|
2016
|
$ Change
|
% Change
|
(dollars in thousands)
|
|
|
|
|
|
|
|
|
|
Software
and royalties
|
$
319
|
$
284
|
$
35
|
12
%
|
Percentage
of total net product revenue
|
78
%
|
80
%
|
|
|
Hardware
and consumables
|
$
39
|
$
23
|
$
16
|
70
%
|
Percentage
of total net product revenue
|
10
%
|
6
%
|
|
|
Services
|
$
49
|
$
49
|
$
—
|
0
%
|
Percentage
of total net product revenue
|
12
%
|
14
%
|
|
|
Total
net product revenue
|
$
407
|
$
356
|
$
51
|
14
%
|
Maintenance Revenue
|
Three Months Ended
June 30,
|
|
|
|
(dollars in thousands)
|
2017
|
2016
|
% Change
|
% Change
|
Total
maintenance revenue
|
$
653
|
$
640
|
$
13
|
2
%
|
|
Three Months Ended
June 30,
|
|
|
|
Cost of Product Revenue:
|
2017
|
2016
|
$ Change
|
% Change
|
(dollars in thousands)
|
|
|
|
|
|
|
|
|
|
Software
and royalties
|
$
6
|
$
26
|
$
(20
)
|
(77)
%
|
Percentage
of software and royalty product revenue
|
2
%
|
9
%
|
|
|
Hardware
and consumables
|
$
18
|
$
22
|
$
(4
)
|
(18
)%
|
Percentage
of hardware and consumables product revenue
|
46
%
|
96
%
|
|
|
Services
|
$
12
|
$
8
|
$
4
|
50
%
|
Percentage
of services product revenue
|
24
%
|
16
%
|
|
|
Total
product cost of revenue
|
$
36
|
$
56
|
$
(20
)
|
(36)
%
|
Percentage
of total product revenue
|
9
%
|
16
%
|
|
|
Maintenance cost of revenue
|
Three Months Ended
June 30,
|
|
|
|
(dollars in thousands)
|
2017
|
2016
|
$ Change
|
% Change
|
Total
maintenance cost of revenue
|
$
214
|
$
219
|
(5
)
|
(2
)%
|
Percentage
of total maintenance revenue
|
33
%
|
34
%
|
|
|
|
Three
Months Ended
June
30,
|
|
|
|
Product
gross profit
|
2017
|
2016
|
$
Change
|
%
Change
|
(dollars
in thousands)
|
|
|
|
|
Software and
royalties
|
$
313
|
$
258
|
$
55
|
21
%
|
Percentage of
software and royalty product revenue
|
98
%
|
91
%
|
|
|
Hardware and
consumables
|
$
21
|
$
1
|
$
20
|
2000
%
|
Percentage of
hardware and consumables product revenue
|
54
%
|
4
%
|
|
|
Services
|
$
37
|
$
41
|
$
(4
)
|
(10
)%
|
Percentage of
services product revenue
|
76
%
|
84
%
|
|
|
Total product gross
profit
|
$
371
|
$
300
|
$
71
|
24
%
|
Percentage of total
product revenue
|
91
%
|
84
%
|
|
|
Maintenance gross profit
|
Three
Months Ended
June
30,
|
|
|
|
(dollars in thousands)
|
2017
|
2016
|
$ Change
|
% Change
|
|
|
|
|
|
Total
maintenance gross profit
|
$
439
|
$
421
|
$
18
|
4
%
|
Percentage
of total maintenance revenue
|
67
%
|
66
%
|
|
|
|
Six Months Ended
June 30,
|
|
|
|
Net Product Revenue
|
2017
|
2016
|
$ Change
|
% Change
|
(dollars in thousands)
|
|
|
|
|
|
|
|
|
|
Software
and royalties
|
$
508
|
$
502
|
$
6
|
1
%
|
Percentage
of total net product revenue
|
74
%
|
66
%
|
|
|
Hardware
and consumables
|
$
86
|
$
54
|
$
32
|
59
%
|
Percentage
of total net product revenue
|
13
%
|
7
%
|
|
|
Services
|
$
86
|
$
203
|
$
(117
)
|
(58)
%
|
Percentage
of total net product revenue
|
13
%
|
27
%
|
|
|
Total
net product revenue
|
$
680
|
$
759
|
$
(79
)
|
(10)
%
|
Maintenance Revenue
|
Six Months Ended
June 30,
|
|
|
|
(dollars in thousands)
|
2017
|
2016
|
$ Change
|
% Change
|
Total
maintenance revenue
|
$
1,309
|
$
1,280
|
$
29
|
2
%
|
|
Six Months Ended
June 30,
|
|
|
|
Cost of Product Revenue:
|
2017
|
2016
|
$ Change
|
% Change
|
(dollars in thousands)
|
|
|
|
|
|
|
|
|
|
Software
and royalties
|
$
17
|
$
51
|
$
(34
)
|
(67)
%
|
Percentage
of software and royalty product revenue
|
3
%
|
10
%
|
|
|
Hardware
and consumables
|
$
55
|
$
29
|
$
26
|
90
%
|
Percentage
of hardware and consumables product revenue
|
64
%
|
54
%
|
|
|
Services
|
$
18
|
$
50
|
$
(32
)
|
(64
)%
|
Percentage
of services product revenue
|
21
%
|
25
%
|
|
|
Total
product cost of revenue
|
$
90
|
$
130
|
$
(40
)
|
(31)
%
|
Percentage
of total product revenue
|
13
%
|
17
%
|
|
|
|
Six Months Ended
June 30,
|
|
|
|
Maintenance cost of revenue
|
2017
|
2016
|
$ Change
|
% Change
|
(dollars in thousands)
|
|
|
|
|
Total
maintenance cost of revenue
|
$
423
|
$
424 $
|
$
(1
)
|
0
%
|
Percentage
of total maintenance revenue
|
32
%
|
33
%
|
|
|
|
Six Months Ended
June 30,
|
|
|
|
Maintenance gross profit
|
2017
|
2016
|
$ Change
|
% Change
|
(dollars in thousands)
|
|
|
|
|
|
|
|
|
|
Total
maintenance gross profit
|
$
886
|
$
856
|
$
30
|
4
%
|
Percentage
of total maintenance revenue
|
68
%
|
67
%
|
|
|
|
Payment Due by Year
|
||||
|
Total
|
Less than
1 Year
|
1-3 Years
|
3-5 Years
|
More than
5 Years
|
Operating
lease obligations
|
$
490
|
208
|
273
|
9
|
—
|
Lines
of credit payable to related parties
|
$
6,270
|
—
|
6,270
|
—
|
—
|
Total
|
$
6,760
|
208
|
6,543
|
9
|
—
|
($ in thousands)
|
|
2017
(nine months)
|
$
208
|
2018
|
$
203
|
2019
|
$
35
|
2020
|
$
35
|
2021
|
$
9
|
Total
|
$
490
|
(a)
|
|
EXHIBITS
|
|
|
|
31.1
|
|
Certification of the Principal Executive Officer pursuant to Rule
13a-14(a) and 15d-14(a)
|
31.2
|
|
Certification of the Principal Financial and Accounting Officer
pursuant to Rule 13a-14(a) and 15d-14(a)
|
32.1
|
|
Certification by the Principal Executive Officer and Principal
Financial and Accounting Officer pursuant to 18 U.S.C. 1350 as
adopted pursuant to Section 906 of the Sarbanes-Oxley Act of
2002
|
101.INS
|
|
XBRL Instance Document
|
101.SCH
|
|
XBRL Taxonomy Extension Schema
|
101.CAL
|
|
XBRL Taxonomy Extension Calculation Linkbase
|
101.DEF
|
|
XBRL Taxonomy Extension Definition Linkbase
|
101.LAB
|
|
XBRL Taxonomy Extension Label Linkbase
|
101.PRE
|
|
XBRL Taxonomy Extension Presentation Linkbase
|
Date: August 14, 2017
|
|
IMAGEWARE SYTEMS, INC
|
|
|
|
|
|
By:
/s/ S. James
Miller
|
|
|
S. James Miller
Chief Executive Officer, Chairman
and Director
(Principal Executive
Officer)
|
|
|
|
Date: August 14, 2017
|
|
By:
/s/ Wayne
Wetherell
|
|
|
Wayne Wetherell
Chief Financial Officer
(Principal Financial and Accounting
Officer)
|
1 Year ImageWare Systems (CE) Chart |
1 Month ImageWare Systems (CE) Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions